You Are Interested in Purchasing a New Car

question 103

Multiple Choice

You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of the car after 5 years. Since you are particularly interested in a certain foreign sedan,
You decide to estimate the resale value of this car with a 99% confidence interval. You manage to
Obtain data on 17 recently resold 5-year-old foreign sedans of the same model. These 17 cars were
Resold at an average price of $12,760 with a standard deviation of $700. Suppose that the interval is
Calculated to be ($12,264.09, $13,255.91) . How could we alter the sample size and the confidence
Coefficient in order to guarantee a decrease in the width of the interval?

• A)Increase the sample size and increase the confidence coefficient.
• B)Keep the sample size the same but increase the confidence coefficient.
• C)Increase the sample size but decrease the confidence coefficient.
• D)Decrease the sample size but increase the confidence coefficient.